Does Warren Buffett think you're out of your mind?

[jfoxcpacfp]

Some interesting tidbits for the perma-bears in Buffett Expects Dow "over 1 million" in 2117. I think I'm sane. Won't call any names, but not so sure about everybody around here   .

[djohnflatfeecfp]

I'm not sure if it was Morgan Housel or Michael Batnick who started the whole DOW 2,000,000 by the end of this century talk. To get there it needs to compound at 5.7% for the next 83 years.  It has done 7.1% for the last 75.

[Zaphod]

djohnflatfeecfp wrote:

I’m not sure if it was Morgan Housel or Michael Batnick who started the whole DOW 2,000,000 by the end of this century talk. To get there it needs to compound at 5.7% for the next 83 years.  It has done 7.1% for the last 75.

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Yes, its actually a very conservative 4% or something to hit that million. It just seems crazy from here.

[djohnflatfeecfp]

The beauty of compounding.  You take a piece of paper that is .004 inches thick and fold it in half.  Then fold it again and again and again.  After 50 folds it's thickness is over 60 million miles, or the distance from the earth to the sun.  Although one CPA I told that to did the math and said it was over 71 million miles.  CPAs.

[G]

djohnflatfeecfp wrote:

The beauty of compounding.  You take a piece of paper that is .004 inches thick and fold it in half.  Then fold it again and again and again.  After 50 folds it’s thickness is over 60 million miles, or the distance from the earth to the sun.  Although one CPA I told that to did the math and said it was over 71 million miles.  CPAs.

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Mythbusters had a fun one about about folding paper:  https://www.youtube.com/watch?v=kRAEBbotuIE

[Dr.V. Investor]

dow has returned 5.7% annually past 100 years, 9.3% since 1980.  so if dow were expected to grow 9.3% annually, dow should be 140,000,000.  is he saying that dow will underperform - only 3.4% annually in the next century?  something to think about.  maybe he is a permabear.